Penn United's move into former Napco building is welcome news
From an economic development and jobs perspective, it's discouraging to see a local employer shut down and leave an empty building behind. And an empty building, if it sits for very long, can project an image of decay and economic decline.
But while an empty building can be seen as a negative sign for some, it is seen by others as an opportunity. And when it came to the former Napco building on Route 356 in Buffalo Township, that's exactly what Penn United Technologies saw — an opportunity.
It was welcome news last week to learn that Penn United had bought the former window manufacturing plant, which was opened in 1996. Penn United is working on improvements to the 110,000-square-foot structure before moving its automated robotics machining department into the building.
In terms of employment, the switch from Napco to Penn United is pretty much a wash — with about 75 jobs involved. But the new Penn United jobs appear to be more desirable than those they replaced because of the high skill levels involved.
Once the building is ready, Penn United will relocate its automated robotics machining department, which makes parts for the medical, can and oil and gas industries. The equipment is expected to be in place by the end of the year.
The high-technology manufacturing jobs that Penn United will move, and hopefully grow, at the site are still the backbone of Western Pennsylvania's economy. Despite a steady stream of news stories in recent years predicting the demise of manufacturing in this part of the country, manufacturing still is this region's leading category for employment-generated income.
Government transfer payments such as Social Security, Medicare and Medicaid and investment income contribute about 20 percent of the region's income, but it is not employment generated.
Manufacturing accounts for 14 percent of the area's income, ranking ahead of health care and government. Though more numerous than manufacturing jobs in this region, health care jobs do not generally have salaries equal to those in high-tech manufacturing.
So the commitment by Penn United to buy and move into the former Napco building offers hope for the future in terms of increasing employment in one of the most desirable job categories — high-technology, high-skill manufacturing.
And because Penn United has a solid reputation for its skilled workforce, employee training programs and utilization of the latest technology, the move to the new building is an encouraging step for the Butler County employment scene.
Another positive aspect of the change relates to Penn United's strong local roots. Napco started with local roots, but after being bought by Great Lakes Windows, it appeared the local connection and commitment weakened. It should be expected that Penn United's home-grown history and track record of growth will bode well for the possibility of job growth in Buffalo Township.
And with only three acres of the nine-acre site developed, Penn United has room to grow in what it is calling Penn United South, because of its location a few miles south of Penn United's main facility.
At a time when many businesses are struggling to survive, it's encouraging to hear companies talk about opportunities to expand. Penn United is in a tough and truly global market, but it has shown an ability to thrive.
It is hoped that the development of Penn United South will ultimately bring more high-skill, well-paying jobs to Butler County.
